Karachi, December 06, 2019 (PPI-OT): Momentum indicators overbought; stay cautious
The KSE-100 index posted a gain of 371 points to close at 40,641. Volumes stood at 508mn shares versus 393mn shares traded previously. The index is likely to revisit yesterday’s high of 40,809 where a break above will target 41,617. However, any downside will find support in the range of 40,385-40,575 where a fall below will kick off the corrective trend. The RSI and the Stochastic Oscillator are overbought, hinting a cautious stance. Investors are recommended to stay cautious on the higher side and wait for dips. The support and resistance are at 40,385 and 40,898, respectively.
FFBL: Upside likely
Strategy: ‘Buy on dips’ – targeting Rs25.75 and Rs29.28; stoploss at Rs23.19.
NML: Upside to continue
Strategy: ‘Buy on dips’ – targeting Rs111.62 and Rs114.55; stoploss at Rs107.00.